Our investment is structured to provide long-term, patient capital that does not require repayment. It is non-voting, and we leave the day-to-day running of the business to our investee partner. Where appropriate, we may provide strategic and financing advice. The distribution payment to us is re-set annually (for non oil & gas royalties) to reflect a portion of our investee partner’s revenue increases and decreases.
Our capital is non-voting and allows you to maintain control of your business. The cost of our capital is significantly lower than traditional private equity. Because we only partially participate in your revenue growth, we leave more of the ‘upside’ to the business owner. Our capital is very different than debt, as there is no required principal repayment or harsh restrictive debt covenants.
We are looking for partner companies that have a track record of generating free cash flow, modest levels of debt and capital expenditures, and sales in excess of $10 million in industries such as services, industrial, infrastructure, food & beverage, and oil & gas. Our current geographic focus is Canada and as we scale we plan to broaden our portfolio internationally.